December, 2020
Each year, Cast & Crew prepares a highlight of key changes. While our “What’s New” does not provide legal advice, it does seek to alert our clients to the myriad issues and challenges that arise in our industry.
New Minimum Wage Increase
| State | 2021 Rate (per hour) | Effective Date |
|---|---|---|
| Alabama | $7.25 | |
| Alaska | $10.34 | Jan. 1, 2021 |
| Arizona | $12.15 | Jan 1., 2021 |
| Arkansas | $11.00 | Jan. 1, 2021 |
| California – Small Employers (25 or fewer employees) |
$13.00 | Jan. 1, 2021 |
| California – Large Employers (26 or more employees) |
$14.00 | Jan. 1, 2021 |
| Colorado | $12.32 | Jan. 1, 2021 |
| Connecticut | $13.00 | Aug. 1, 2021 |
| Delaware | $10.25 | Oct. 1, 2021 |
| Florida | $8.65 | Jan. 1, 2021 |
| Florida | $10.00 | Sept. 30, 2021 |
| Georgia | $7.25 | |
| Hawaii | $10.10 | |
| Idaho | $7.25 | |
| Illinois | $11.00 | Jan. 1, 2021 |
| Indiana | $7.25 | |
| Iowa | $7.25 | |
| Kansas | $7.25 | |
| Kentucky | $7.25 | |
| Louisiana | $7.25 | |
| Maine | $12.15 | Jan. 1, 2021 |
| Maryland – 14 or fewer employees | $11.60 | Jan. 1, 2021 |
| Maryland – 15 or more employees | $11.75 | Jan. 1, 2021 |
| Massachusetts | $13.50 | Jan. 1, 2021 |
| Michigan | $9.65 | |
| Minnesota – Small Employers (100 or fewer employees) | $8.21 | Jan. 1, 2021 |
| Minnesota – Large Employers (101 or more employees) | $10.08 | Jan. 1, 2021 |
| Mississippi | $7.25 | |
| Missouri | $10.30 | Jan. 1, 2021 |
| Montana | $8.75 | Jan. 1, 2021 |
| Nebraska | $9.00 | Jan. 1, 2016 |
| Nevada – employers who do provide employee benefits | $8.75 | July 1, 2021 |
| Nevada – employers who do not provide employee benefits | $9.75 | July 1, 2021 |
| New Jersey | $12.00 | Jan. 1, 2021 |
| New Jersey – Small Employers (fewer than 6 Employees) and seasonal employees | $11.10 | Jan. 1, 2021 |
| New Hampshire | $7.25 | |
| New Mexico | $10.50 | Jan. 1, 2021 |
| New York | $12.50 | Dec. 31, 2020 |
| North Carolina | $7.25 | |
| North Dakota | $7.25 | |
| Ohio | $8.80 | Jan. 1, 2021 |
| Oklahoma | $7.25 | |
| Oregon (general) | $12.00 | July 1, 2021 |
| Oregon (urban) | $12.75 | July 1, 2021 |
| Pennsylvania | $7.25 | |
| Rhode Island | $11.50 | Oct. 1, 2020 |
| South Carolina | $7.25 | |
| South Dakota | $9.45 | Jan. 1, 2021 |
| Tennessee | $7.25 | |
| Texas | $7.25 | |
| Utah | $7.25 | |
| Vermont | $11.75 | Jan. 1, 2021 |
| Virginia | $9.50 | May 1, 2021 |
| Washington | $13.69 | Jan. 1, 2021 |
| West Virginia | $8.75 | |
| Wisconsin | $7.25 | |
| Wyoming | $7.25 |
Local Minimum Wage Increases
| Locality | 2021 rate (per hour) | Effective Date |
|---|---|---|
| Flagstaff, AZ | $15.00 | Jan. 1, 2021 |
| Alameda, CA | $15.00 | July 1, 2020 |
| Belmont, CA | $15.90 | Jan. 1, 2021 |
| Berkeley, CA | $16.07 | July 1, 2020 |
| Burlingame, CA | $15.00 | Jan. 1, 2021 |
| Cupertino, CA | $15.65 | Jan. 1, 2021 |
| Daly City | $15.00 | Jan. 1, 2021 |
| El Cerrito, CA | $15.61 | Jan. 1, 2021 |
| Emeryville – Small Employers (55 or fewer employees) |
16.84 | July 1, 2020 |
| Emeryville – Large Employers (56 or more employees) |
16.84 | July 1, 2020 |
IRS issues standard mileage rates for 2021
IR-2020-279, Dec. 22, 2020
WASHINGTON — The Internal Revenue Service today issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on Jan. 1, 2021, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:
- 56 cents per mile driven for business use, down 1.5 cents from the rate for 2020
- 16 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, down 1 cent from the rate for 2020, and
- 14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 2020.
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Social Security Tax limits for 2021
Starting Jan. 1, 2021, the maximum earnings subject to the Social Security payroll tax will increase by $5,100 to $142,800—up from the $137,700 maximum for 2020, the Social Security Administration (SSA) announced Oct. 13. The SSA also posted a fact sheet summarizing the 2021 changes.
The taxable wage cap is subject to an automatic cost-of-living adjustment (COLA) each year based on increases in the national average wage index, calculated annually by the SSA.
| Payroll Taxes: Cap on Maximum Earnings | ||
| Type of Payroll Tax | 2021 Maximum Earnings | 2020 Maximum Earnings |
| Social Security | $142,800 | $137,700 |
| Medicare | No limit | No limit |
| Source: Social Security Administration. | ||
401K limits for 2021
There is no change in the 2021 401k limits. They remain the same from 2020
- The 401(k) contribution limit is unchanged at $19,500
- The 401(k) catch-up contribution limit is $6,500 for those age 50 and older
- The limit for employer and employee contributions will be $58,000
IRS Issues new Federal W-4 for 2021
The 2021 Form W-4 has been issued by the IRS. Please see the link below for the new 2021 version. Please note, all new hires from 1/1/2021 should be hired with the 2021 version of the W-4. Older versions will be considered an incomplete W-4 and defaulted to the highest tax rate.
https://www.irs.gov/pub/irs-prior/fw4–2021.pdf
Georgia Loan Out Back-Up Withholding rate for 2021
GA Loan-out rate decreased to 5.75% for 2021 from the current 6% in 2020.
New Mexico Loan Out withholding rate for 2021
The New Loan Out state back up withhold will be increasing in 2021 to 5.9%
PHBP – Producer’s Health Benefit Plan for Commercial Production Employees
Minimum contribution amount increased to $45.00 per day
For further information, please contact Compliance@castandcrew.com.
The proceeding information is provided for informational purposes only, should not be construed as or relied upon as legal advice and is subject to change without notice. If you have questions concerning particular situations, specific payroll administration or labor relations issues, please contact your counsel.